Fender Stock, Why the Music Stock Never Took Off
Fender’s incredibly successful past in the music industry and its near monopoly on guitar sales in the United States and worldwide should make one wonder why Fender stock is not public. However, Fender’s IPO failure had everything to do with timing and economic conditions in Europe in the early 2010s. In this article we’ll be talking about what Fender is, why Fender scrapped an IPO, and the possibility of a future Fender IPO or at least a public listing.
What is Fender?
Fender is a musical instrument brand that is world famous for its Stratocaster and Telecaster guitars that took the world by storm through the second half of the 20th century. Music and guitar legends such as Bruce Springsteen, Jimi Hendrix, and Bob Dylan were only a handful of the famous names tied to the brand and helped popularize it. Fender was founded in 1946 and since then it has only grown in popularity. Anyone who has ever played a guitar has owned or wanted to own a Fender. Fender is also famous for creating amps and other musical instruments like pianos, organs, and various string instruments.
A Fender IPO was a real possibility in the second half of 2012. Fender went so far as to have their IPO price at $13 to $15 per share and roughly 11 million shares to sell. It had been anticipating an IPO that would bring in between 140 and 160 million dollars. The company filed for its IPO in March of 2012, however, as stated by Fender’s CEO, it was believed that economic turmoil in Europe at the time would not give the company its appropriate valuation. As a result of this turmoil, the company decided to withdraw its IPO. It is likely that regardless of these market conditions in Europe the IPO would have fared well for a few years given that this is one of, if not the comma largest musical instrument companies in the world.
Fender Stock Pricing
Fender stock is currently private and was never listed publicly due to the withdrawal of its IPO, however, the company has not been performing well. Fender has been dealing with debt problems ever since the late 2000s. This considered, it is very likely that Fender stock and the company is a whole are not performing as well as they had in the mid to late 20th century at the height of rock and roll. Ever since the adoption of more pop, rap, and genres that are switching to the use of software to produce music rather than instruments, the brand has seen sales in its guitars drop significantly. Fender guitars, although a staple in the music community, are not selling like they used to. Given that the main appeal of Fender as a company is its guitars and physical musical instruments, it has likely had a devastating impact on the company’s profits.
Will Fender Stock Ever Go Public?
There will likely never be a time where Fender stock is public, or Fender holds another IPO. Due to its current struggle, and likely continuing struggle, the company will only see its profits grow smaller and smaller each year. The brand will likely remain for a long time to come, but it will certainly see its sales and it’s force in the music industry contract significantly.
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